Dollar lower ahead of US retail sales, equities flat

So far, volatility has been minimal on Friday, with main equity benchmarks trading flat and the greenback sliding against most of its major peers.

From other news, the New Zealand CPI rose 3.3% in the second quarter on the yearly basis, while the quarterly change jumped to 1.3%. Both numbers were way above analysts’ estimates, leading to expectations that the RBNZ will hike interest rates in August, earlier than previously expected.

The NZDUSD pair was up half a percent after the numbers.

Later in the day, the EU CPI numbers are due, with the yearly change seen at 1.9%. The ECB has previously confirmed they plan to continue with the money printing, probably forever.

During the US session, retail sales will be published, and they should improve somewhat in June. However, the numbers will still be weak. 

US equities dropped yesterday, erasing some of this week’s gains as the rally seems overstretched. However, corrections like that are welcome, and the medium-term remains bullish. 

The TWI oil seems to be forming a topping formation as the commodity failed to stay above 75 USD. Therefore, the next support is expected near 71 USD and afterward at the psychological level of 70 USD.

Source: https://www.axiory.com/market-news/dollar-lower-ahead-of-us-retail-sales-equities-flat